urn:lsid:ibm.com:blogs:entries-59f8a2ad-450c-4b6d-a1ff-25d9523d2af9The Performance Perspectives Blog - Tags - banking A blog about business analytics, business intelligence and performance management using IBM Cognos and IBM SPSS software.12013-08-01T13:16:03-04:00IBM Connections - Blogsurn:lsid:ibm.com:blogs:entry-fd1f9126-f01d-492d-af51-1ba29eb8c5adCan your bank know what you really want?Scott Mullinssmullins@us.ibm.com270004D36QactiveComment Entriesapplication/atom+xml;type=entryLikes2012-01-30T13:39:23-05:002012-01-30T16:06:12-05:00<DIV><EM>By Gregg Lindemulder, Senior Writer, IBM Business Analytics<BR><BR></EM><BR>When I was in high school in the ‘80s I worked as a doorman at the movie theater in our local mall. It was a great job. I got to see all the movies I wanted, some of them over and over again. (I watched “The Jerk” with Steve Martin at least 30 times and when it comes on TV today I can still recite the dialogue). On payday, I would grab my paycheck and walk a few stores down to the local bank branch and cash it. </DIV>
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<DIV>That bank became a very familiar part of my life. I knew the tellers by name and would stop by at least once every few weeks to cash my check and put a few dollars in a savings account.</DIV>
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<DIV>Things are much different today. Thanks to direct deposit, I never see a hard copy of my paycheck. I pay all my bills online and use the ATM to grab some cash. I can’t remember the last time I actually talked with teller. </DIV>
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<DIV>So how can banks get to know customers like me who they may rarely see? How do they understand what I want and how to keep me satisfied? The answer for many banks today is customer analytics.</DIV>
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<DIV><B>Transforming data into insight</B></DIV>As with other industries, there has been an explosion in the amount of available customer information within the banking industry. This includes everything from simple demographic data to transactional records, product holdings, service preferences, online activity logs, call center interactions, social media and feedback including complaints and inquiries.<BR>But making sense of those massive volumes of data can be a real challenge.<BR>
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<DIV>Analytics helps banks unlock the insights and interconnections that are hidden within all that customer data. By combining business intelligence and predictive analytics technologies, banks can get to 'know' their customers, anticipate their needs and build stronger, more profitable relationships with them. </DIV>
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<DIV>Here are a few examples of how banks are using customer analytics:</DIV>
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<DIV><B>Predicting what customers want.</B> Banks are using analytics to accurately predict who is most likely respond to an email or online offer - and using that insight to create highly targeted marketing offers and programs.<B><BR><BR>Personalizing customer interactions.</B> Imagine if a call center or branch employee knew which customers were unhappy and need a little extra care or what additional products they might be interested in based on recent life events like marriage or having a baby. Analytics helps banks tweak and personalize each customer interaction based on this knowledge.<B><BR><BR>Improving customer lifetime value.</B> With a better understanding of the profitability (and risk) of each account holder, banks can put an “early warning system” in place to predict when their most valuable customers are likely to leave. Or create programs that will increase the profitability of specific customer segments.</DIV></BLOCKQUOTE><BR>These are just a few ways banks can use customer analytics to gain a deeper understanding of their customers. One of the benefits of the technology is that the more banks use it, the more effective it becomes. Because it learns from the results of every customer interaction, new insights are continually generated and fed back into the system.<BR>
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<DIV><B>IBM Financial Services Online Summit</B></DIV>On Tuesday February 7, there’s a great opportunity to learn more about how leading banks and other financial services organization are using business analytics. Register now for the <A href="https://events.unisfair.com/index.jsp?code=&amp;seid=27706&amp;eid=556">IBM Financial Services Online Summit</A> to hear directly from the financial services executives who are putting analytics into action to help win and retain customers. By Gregg Lindemulder, Senior Writer, IBM Business Analytics When I was in high school in the ‘80s I worked as a doorman at the movie theater in our local mall. It was a great job. I got to see all the movies I wanted, some of them over and over again. (I...003222urn:lsid:ibm.com:blogs:entries-59f8a2ad-450c-4b6d-a1ff-25d9523d2af9The Performance Perspectives Blog2013-08-01T13:16:03-04:00